Input tax credit in respect of tax-free goods which became taxable with effect from 17 July 2022

This query is : Resolved

Manoj Chauhan (Querist)
Follow

30 July 2022 Dear Sir,

Some of the items/goods which were earlier exempt from GST became taxable starting 17 July 2022.

In this connection, please guide regarding following:
(1) We have unsold stock of FG (Finished Goods) which became taxable from 17 July 2022.

(2) We have also unused/un-consumed stock of "Inputs" which goes into making the FG mentioned in Point No. 1 above.

(3) Which input tax credit we can now avail in respect of the above 2 items (FG and Inputs)

(4) We are sure we can take input tax credit in respect of the unused input items (as they will be now used in making taxable products)

(5) We are not sure about the input tax credit for FG.

Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

31 July 2022 You are going to pay GST on FG hence take ITC on it.

Manoj Chauhan

Manoj Chauhan (Querist)
Follow

02 August 2022 Thanks for the reply. Could you please elaborate on this? Because how we can find the GST amount (for Input Tax Credit purpose) on FG. In this particular case, is ITC equal to GST payable on FG?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

03 August 2022 I can't understand your query.
Your out put of FG is taxable calculate concerned input and claim it.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now